Fried Chicken Between Two Waffles? Sandwich Chain Adds Stores Nationwide to Its Growth Recipe
by: Richard Lawson | CoStar News
A Southern California fast-casual chain featuring a chicken sandwich with a twist – fried tenders between two waffles – is taking flight outside its home base.
Bruxie, backed by the same private equity firm that was behind P.F. Chang’s, has struck franchise deals for new outlets in Colorado, Georgia, Alabama and Florida. The expansion also includes more in Southern California.
The Santa Ana-based chicken-and-waffles sandwich chain seeks to have 120 sites open in the next five years. Locations can be between 400 square feet and 1,800 square feet and require an initial investment of $600,000 to $800,000. These aren’t for the first-time franchisee.
"We are specifically targeting current franchise restaurant operators," John Ramsay, Bruxie’s vice president of franchise development, said by email. "We have representatives from Five Guys, Carl’s Jr. and Sbarro."
The company's market selection also provides a look at a real estate strategy for a fast-casual concept that features a unique menu item. Fast-casual strategies are drawing increased interest in commercial real estate circles because the category has more growth than casual restaurants, and may be in need of more space.
For Bruxie in Colorado, two outlets are expected to be in the Denver International Airport. The others are in areas near military bases, beach communities and universities.
Alabama is scheduled to have four: near Maxwell Gunter Air Force Base in Montgomery; Auburn, which has Auburn University; Dothan and Mobile.
Georgia’s is set be in the Columbus area close to Fort Benning. Florida will get three: in Tallahassee, which is home to Florida State University; Pensacola, which has a U.S. Navy air station; and Panama City.
Bruxie's version of chicken and waffles is a sandwich, one of which includes macaroni and cheese. (Bruxie)
Dan Rowe, founder and CEO of franchise development company Fransmart, which helped build the Five Guys burger chain, said Bruxie has a strong advantage when getting into retail locations because "there are no competitive uses."
It is the only chain out there that sells a chicken-and-waffles sandwich, according to Rowe, who knows the chain’s leadership and is a fan of the concept but isn’t working with them on building the franchise.
A variety of chains have chicken-and-waffles on the menu. But it’s the traditional version of bone-in fried chicken with a waffle, and not a sandwich.
There's risk because not all goes well for expanding chicken franchises. Tampa, Florida-based PDQ, which has more than 60 locations mostly in Florida, saw its two franchise locations in the Phoenix area close this month without explanation.
But for Bruxie, the company doesn’t just see other chicken places as their sole competitors.
"We view every food service as the competition, meaning that when people make a decision on where to go, they think of the kind of food they want," said Tony Smith, Bruxie’s chief executive officer. "Typically, what we see is that people view us as a higher quality product that offers a more indulgent meal."
Bruxie started in 2010. Three years after it was founded, the chain got private equity funding from Greenwich, Connecticut-based L Catterton, which backs numerous brands ranging from restaurants to consumer brands.
L Catterton backed P.F. Chang's in the late 1990s before the casual dining chain went public. Austin, Texas-based Hopdoddy Burger Bar, which touts itself as a craft burger eatery, is among its current brands along with Broomfield, Colorado-based Noodles & Co. and Dallas-based Uncle Julio's Mexican.
L Catterton upped its investment in Bruxie four years ago to give it a majority stake in the brand.
Bruxie’s expansion comes as other fast-casual chicken tender chains push their own expansions. Fayetteville, Arkansas-based Slim Chickens opened its 100th location last month as it charges toward opening 600 locations over the next decade.
Two weeks ago, Huey Magoo’s Chicken Tenders, based in the Orlando, Florida, area sold its 100th franchise. It plans to open at least 10 locations in Florida, Georgia and Mississippi this year to grow beyond the 13 existing ones.
They and others are trying to carve into a business dominated by Athens, Georgia-based Zaxby’s, a chain that has been around since 1990 and has more than 900 locations. Chick-fil-A is the giant on the fast food side of the chicken sandwich business.